MILWAUKEE — Boston Store parent company Bon-Ton Stores has filed for a Chapter 11 bankruptcy reorganization, a move announced just days after the company said it will close 42 of its department stores.
The closures do not affect the Boston Store at Regency Mall, which remains open despite the upcoming closure of nine other Wisconsin Bon-Ton stores.
Bon-Ton Stores, which has corporate headquarters in Milwaukee and York, Pa., announced the reorganization in a news release issued Sunday. It stated in part that “the company and its subsidiaries have filed voluntary petitions for a court-supervised financial restructuring under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
“The company is currently engaged in constructive discussions with potential investors and its debt holders regarding the terms of a financial restructuring plan.” Bon-Ton said it intends to use the bankruptcy process to explore potential options which may include a sale of the company or some of its assets as part of the plan of reorganization.
Bon-Ton stores, e-commerce and mobile platforms under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates are “open and operating as usual,” the company stated.
“BonTon has seven well-loved brands and associates who have remained committed to delivering excellent service to our customers for decades,” company President and CEO Bill Tracy stated.
47 store closures this year
Including the 42 store closures announced last week, in total Bon-Ton has plans to close 47 stores this year, four of which closed in January and one closing that is nearly complete.
The additional 42 closings began with store closing sales on Feb. 1 and will run about 10 to 12 weeks, the company said.
The Regency Mall Boston Store owns its property and, consequently, has no lease payments to the mall’s owners, Hull Property Group. John Mulherin, Hull’s vice president-government relations, said that may have been the reason the Racine store escaped closure.
Bon-Ton said it has received a commitment from its existing ABL lenders for up to $725 million in financing which, subject to court approval, is expected to support the company’s operations during the financial restructuring process.
Bon-Ton operates 256 stores, including nine furniture galleries and four clearance centers, in 23 states in the Northeast, Midwest and upper Great Plains.